New York Outlines Adult-Use Cannabis Regulation Package

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Following the legalisation of adult-use cannabis in New York in 2021, the State has now finalised its adult-use regulations framework that aims to create an equitable and sustainable cannabis industry.

New York’s Office of Cannabis Management (OCM) has stated that the regulations have been designed to support public health best practices and establish product safety and quality guidelines.

Additionally, they outlining employee training standard, define business security requirements to protect public safety and incentivide sustainable cannabis operations by prioritising energy and resource efficiency and protecting against wasteful business practices.

The OCM has stated that the Adult-Use Cannabis Regulation Package Outlines:

1. The application and license selection and process;
2. The role municipalities play in regulating cannabis businesses;
3. Key social and economic equity program provisions;
4. Environmental and sustainability standards cannabis cultivation, processing and manufacturing
5.  Ownership and true party of interest provisions; and
6. General business operating requirements, including but not limited to: security, worker health and safety standards, inventory tracking, record keeping and transportation.

For example, rules within the social and economic equity program provisions set out who is eligible for priority licensing, and rules with in the municipality rule-making section set out what local laws and regulations related to cannabis that municipalities would be prohibited from implementing, such as ‘adopting local laws that impose a fee on adult-use retail dispensary or on-site consumption licenses, except where the fees are also applicable to off-premises liquor establishments…’.

The regulations were approved by the OCM following two separate public comment periods that took place from 14 December 14, 2022 to 13 February, 2023, and from 14 June to 31 July, 2023.

More than 4000 comments were received through the consultation seeking clarification on various provisions, proposed additional amendments and requested technical modifications.